Percentage of Non-Itemizers Who Give to Charity Is Declining, Study Shows

The percentage of taxpayers who don’t itemize their charitable deductions but who do give to charity fell from 52 percent to 40 percent from 2004 to 2014, according to a new study. Giving by itemizers decreased from 88 percent to 82 percent during that time.

The analysis of about 9,000 households provides more fodder for nonprofits worried about the impact of the 2017 tax law on giving. The tax law doubled the standard deduction, resulting in an estimated 21 million fewer taxpayers itemizing.

The study was published by United Way using data from the University of Michigan, the Chronicle of Philanthropy, and the Internal Revenue Service.

The study also provided new data on the impact of itemizing on charitable giving. Of respondents who itemized in 2008 but not in 2010, there was an 11 percent decline in giving. On the flip side, those who did not itemize in 2008 but did in 2010 increased their giving 11 percent.

The United Way study comes as Democratic Rep. Danny Davis of Illinois introduced legislation “to extend the charitable deduction to all taxpayers regardless of whether a taxpayer itemizes deductions.”

Nonprofits have tried but failed repeatedly to get Congress to extend the charitable deduction to all taxpayers.